Fortinet, Inc. (FTNT) Stock Analysis

Analysis from 10-Q filed 2025-11-07. Data as of Q4 2025.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 54.5%. FCF margin 35.1%. D/E 0.8x. Source: 10-Q filed 2025-11-07.

Metric	Value	Context
ROIC	54.5%	Above industry average
FCF Margin	35.1%	Strong cash generation
Debt/Equity	0.8x	Moderate leverage

ROIC 54.5% — Top 5% of sector peers. FCF margin 35.1% — Top 10%.

Explore Fortinet, Inc.: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for FTNT: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

---

Profitability: Fortinet, Inc. earns 54.5% ROIC, Top 5% in Technology

ROIC TTM 54.5%, sector median 4.6%, Top 5%. DuPont: NOPAT margin 24.8% × asset turnover 0.7x. Gross margin 80.5%. Operating margin 30.7%. Source: 10-Q filed 2025-11-07.

Metric	FTNT	Rating	Context
Return on Invested Capital (ROIC)	54.5%	Excellent	Above sector median of 4.6%
Return on Equity (ROE)	121.1%	Excellent	Efficient use of shareholder equity
Gross Margin	80.5%	Excellent	Strong pricing power
Operating Margin	30.7%	Excellent	Efficient operations

---

Cash Flow: Fortinet, Inc. generates $2.4B FCF at 35.1% margin, positive NaN/8 quarters

FCF TTM $2.4B. FCF margin 35.1%, Top 10%. OCF/Net income 1.4x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-07.

Metric	FTNT	Rating	Context
Free Cash Flow Margin	35.1%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$2.4B	Good	Positive cash generation
OCF/Net Income	1.4x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: Fortinet, Inc. at 0.8x leverage

Debt/Equity 0.8x. Net cash $1.5B. Source: 10-Q filed 2025-11-07.

Metric	FTNT	Rating	Context
Debt to Equity	0.8x	Adequate	Moderate leverage
Net Cash Position	$1.5B	Excellent	Net cash positive

---

Valuation: Fortinet, Inc. trades at 32.5x earnings

P/E 32.5x. EV/Sales 8.6x. FCF yield 4.0%. Source: 10-Q filed 2025-11-07.

Metric	FTNT	Rating	Context
P/E Ratio	32.5x	Adequate	Premium valuation
EV/Sales	8.6x	Adequate	Growth premium priced in
FCF Yield	4.0%	Adequate	Lower cash yield

---

Capital Allocation: Fortinet, Inc. returns 0.0% shareholder yield

Total shareholder yield 0.0%. Capital returned $0 TTM. Source: 10-Q filed 2025-11-07.

Metric	FTNT	Rating	Context
Total Shareholder Yield	0.0%	Warning	Dividend + buyback yield combined
Total Capital Returned (TTM)	$0	Adequate	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	54.5%	Top 5%	11.8x above
Free Cash Flow Margin	35.1%	Top 10%	4.1x above
Gross Margin	80.5%	Top 25%	1.6x above
Operating Margin	30.7%	Top 10%	6.4x above
Return on Equity (ROE)	121.1%	Top 5%	23.6x above
P/E Ratio	32.5x	N/A	-

---

Financial Scorecard

Metric	FTNT	Rating	Sector Context
Return on Invested Capital (ROIC)	54.5%	Excellent	Top 5% of sector (median: 4.6%)
Free Cash Flow Margin	35.1%	Excellent	Top 10% of sector (median: 8.5%)
Gross Margin	80.5%	Excellent	Top 25% of sector (median: 51.0%)
Debt to Equity Ratio	80.5%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	32.5x	Adequate	Growth premium
Free Cash Flow Yield	4.0%	Adequate	Moderate yield

---

Frequently Asked Questions

Q: What is Fortinet, Inc.'s Return on Invested Capital (ROIC)?

Fortinet, Inc. (FTNT) has a trailing twelve-month Return on Invested Capital (ROIC) of 54.5%. Sector median 4.6%. Source: 10-Q filed 2025-11-07.

Q: What is Fortinet, Inc.'s Free Cash Flow Margin?

Fortinet, Inc. (FTNT) has a free cash flow margin of 35.1%, generating $2.4 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-07.

Q: What is Fortinet, Inc.'s P/E ratio and how does it compare to peers?

Fortinet, Inc. (FTNT) trades at a P/E ratio of 32.5x, which is above the sector median of N/A. EV/Sales 8.6x. FCF yield 4.0%. Source: 10-Q filed 2025-11-07.

Q: How much debt does Fortinet, Inc. have?

Fortinet, Inc. (FTNT) has a debt-to-equity ratio of 0.8x with total debt of $996.3 million. Net cash position $1.5 billion. Source: 10-Q filed 2025-11-07.

Q: What is Fortinet, Inc.'s revenue and earnings growth?

Fortinet, Inc. (FTNT) grew revenue by 57.2% year-over-year. EPS +7.1% YoY. Source: 10-Q filed 2025-11-07.

Q: Is Fortinet, Inc. buying back stock?

Fortinet, Inc. (FTNT) repurchased $2.3 billion of stock over the trailing twelve months. This represents a buyback yield of 3.8%. Source: 10-Q filed 2025-11-07.

Q: How does Fortinet, Inc. compare to competitors in Technology?

Compared to other companies in Technology, Fortinet, Inc. (FTNT) shows: ROIC 54.5%, sector median 4.6% (Top 5%). FCF margin 35.1%, sector median 8.5% (Top 10%). Gross margin 80.5%, 29.4pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with Fortinet, Inc.?

Quantitative warning flags for Fortinet, Inc. (FTNT): 1) ROIC declining -3.1% over 8 quarters. Source: 10-Q filed 2025-11-07.

---

Data Source: Data sourced from 10-Q filed 2025-11-07. TTM metrics as of Q4 2025.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.